Global Oil And Gas Industry

As the growth in the shale, oil market is continuously increased the input of oil supplies in the market by 11 per cent, which make an oil price fall cause of overwhelming supply (Meyer,2013).As a result of this, the buyer has more choice to seek a supplier , which has a lower prices and better contract condition. Thus, these forces become a high threat to Afren.

Oil suppliers dig deep down to the roots to analyze and derive concrete solutions to carry on the rising market. The force of fracking in the United States is lifting the economy; the system has been a political game changer for the nation, creating job opportunities and investing money into the community. The United States is currently capable of competing with the global marketplaces at a high rate. This coordination leads to knowledge for on-shoring manufacturing, which eliminates the dependency on foreign oil. This significant groundwork is driving opportunities for innovators. The abundant supply of oil and the inexpensive cost leads to cheaper energy for consumers (Dews, 2015). Along with the low price for refineries,

Our dependence on foreign oil and natural gas has created a vulnerability affecting our national security and economic stability. Up until this past decade there was an appreciable decline in our oil and natural gas production in the US and we were tied to world market price fluctuations. Oil prices and natural gas prices rose and fell based on OPEC’s and other large oil and natural gas producers’ production and pricing decisions. Beginning in 2005, things began to change in the US oil and natural gas industry. New technology called hydraulic fracturing or “fracking” made it possible to extract oil and natural gas from geological

The energy industry is not any different than most commodity-based industries as it faces long periods of boom and bust. Drilling and other service firms are highly dependent on the price and demand for petroleum. These firms are some of the first to feel the effects of increased or decreased spending. If oil prices rise, it takes time for petroleum companies to size up land, setup rigs, take out the oil, transport it and refine it before the oil company sees any profit. On the other hand, oil services and drilling

In addition to the US peak oil situation, the US Oil Drilling and Gas Extraction Industry faces heavy foreign market competition. In 2011, the US ranked 3rd in oil production, behind Saudi Arabia and Russia (Energy, 2012). Saudi Arabia’s OPEC governor expects Saudi output to rise steadily beyond 2030 with a 1.5 million barrel per day spare production capacity then (Energy, 2012). Russia holds the world’s largest

Some emergent countries have put a lot of effort to find new reservoir or find the best way to recover oil from deep seas such as The pre-salt in Brazil. America has high projections for the future with fracking. However, lower prices would put at risk investments in unconventional sources. For example, tar sands, shale oil, deep sea and fracking. Our forecast is that the crude oil price tend to slowly rise until the market balance it self to avoid oversupply especially because of the weakening in the global oil

In the U.S., the advanced hydraulic fracturing and horizontal drilling lead to a revolution of natural gas and oil, brining about the dynamic job opportunities and economic growth which affects other industries apart from natural gas and oil field. As a superpower of energy, the United States can make good use of its rich resources with the correct policies and build a bright future for Americans and reduce energy-caused risks globally (Mark Green, 2014).

The U.S. was supposed to be the world’s new swing oil producer, able to nimbly open and close the taps in response to market forces, thanks to its bounty of shale fields.” In the past a barrel of oil has been one hundred dollars, recently it has dropped to thirty dollars. Though some wells can be profitable at low prices it puts a serious strain on the oil industry as explained in this article.

Within the last year, oil prices in the United States have dropped significantly. As oil drilling in the United States has reached its highest level in over 30 years, consumers are reaping the benefits. Among these gains are record-low prices at the pump, and cheaper oil to heat homes. However, oil prices did not just drop on their own; multiple factors contributed to the fall. Increased domestic production, declining global demand, and competition from other oil-producing nations had led to rapidly dropping oil prices across the United States.

Historically, Petrobras has been a dominant player in the oil and energy sector of Brazil. When this company was first born in the 1950s, most Brazilian lived in rural areas, and the economy relied heavily on agriculture. However, with the modernization of society and due to shifts in the energy sector, Brazil has undergone significant changes in the past seventy years. For the past few years, Brazil has been enduring one of the worst economic and political crises of modern history. This crisis has not only affected the country, but also the energy sector as a whole. With the collapse of commodity prices in 2014 and a change in government, the energy sector in Brazil is moving away from strong state-centered policies to an energy sector that is more open, diversified, competitive, and more welcoming to private investment.

Recently, the oil and gas industry has experienced dramatic drop in oil prices with companies facing 50% decline in revenues in 2015 . However, declining oil production in the United States and stronger production produces positive industry outlooks .

International Energy Agency & Organisation for Economic Co-operation and Development (2012). World energy outlook 2012. Paris: OECD/IEA.

discounted value to compete with other conventional oil producers in the market [6, 7]. The position of

Gas and oil development plans are branded by huge capital investments. Exploration and production operations incorporate numerous activities, reaching from undertaking geological surveys, finding hydrocarbon resources, and commercially exploiting them. Projects in this area are of a high risk nature in physical trading, and political sense as it is hard to know in advance the presence, degree and value of hydrocarbon resources, as well as production costs and the price oil of oil in the global world market Kaiser, Mark .J (2007)

• The existing gas utilities be unbundled and a single statecontrolled natural gas transmission company be created for